Break-even calculator
The break-even point is the revenue below which running the business costs you money. Know that number by heart.
Margin = (selling price − cost of goods) ÷ selling price, excl. VAT. If you do not know your margin, work it out first with the margin calculator.
How is the break-even point calculated?
Break-even = fixed costs ÷ margin
Example: fixed costs of 4500 € a month and a 30% margin. Every 100 € sold brings 30 € towards fixed costs, so clearing the threshold takes 4500 ÷ 0.3 = 15 000 € of revenue a month. Everything above that starts earning profit - everything below comes out of your own pocket.
What is a fixed cost and what is a variable cost?
- Fixed costs run regardless of sales: rent and warehousing, salaries, accounting, the online store platform and software, loan payments, a standing marketing budget.
- Variable costs arise with every sale: the cost of goods, packaging, shipping, payment fees. They already sit inside the margin - if your margin is calculated from the cost of goods only, subtract shipping and payment fees from it first.
- Advertising behaves in two ways: a fixed monthly budget is a fixed cost, but ad spend that scales with sales (for example click or commission fees on price comparison portals) is a variable cost.
The break-even point is not a goal, it is a floor. If your actual revenue is only just above it, every price war and every quiet month immediately becomes a profit question - and then it is especially worth knowing exactly where your prices stand against your competitors.
The calculator shows your numbers. The market shows your competitors'.
Look360 monitors your and your competitors' prices in online stores every night and tells you when someone undercuts you. Start with the free store health check - the score is instant, no sign-up.